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Beijing's Policies Concern EU Firms

Updated June 30, 2010 12:01 a.m. ET

BEIJING—Many European companies expect the regulatory environment to worsen for foreign firms operating in China over the next two years, the latest sign that multinationals' optimism about China's economic growth is tempered by concerns about protectionism.

The European Union Chamber of Commerce's business confidence survey in China for 2010, released Tuesday, shows that uncertainty about China's regulatory environment undermines otherwise positive expectations for market growth. The annual survey's results come just months...